Shares in PageGroup PLC (LSE:PAGE) fell 5% to 404p after the recruiter reported a bigger-than-expected decline in the third quarter while also revealing that there had been an increase in the number of job offers rejected by candidates.
Net fee income at constant currencies fell 7.9% in the past quarter, compared to the average City forecast for a 7.3% drop.
Management now expects full-year underlying profit (EBIT) to be between £125 million and £130 million, before one-off costs of £5 million relating to a recently announced cost reduction plan. City consensus was for £131 million before the update.
The most resilient region was again the largest, EMEA (Europe, Middle East, Africa), with a 1.3% decline, with Asia Pacific and UK hardest hit with plunges of 19.3% and 18.9%.
Salary levels remain elevated, but increases offered to candidates reduced compared with last year, the FTSE 250-listed company said, which when combined with lower candidate confidence led to an increase in the number of offers rejected by candidates.
Temp recruitment continued to outperform perm.
"Looking ahead, due to a slower end to the quarter, there is a heightened degree of uncertainty in the short term," said chief executive Nicholas Kirk.
On the plus side, he pointed to a diversified business model, strong balance sheet that had net cash of £97.9 million at the half-year stage, and cost base that is "under continuous review and can be adjusted rapidly to match market conditions".
Broker Liberum said the company was "not yet at the inflection point".
And at UBS they noted that management reported a "slower end to the quarter".
Combined with the costs of changed flagged at the recent capital markets day said "we see scope for further mid-single digit consensus profit downgrades as a result".